»Ê¹ÚÌåÓýapp

Erddig Motors Ltd v McGregor 40TC95

This case was concerned with the source of £8,000 lodged in a bank account by a director of the company. »Ê¹ÚÌåÓýapp director gave conflicting explanations of the source, but the Commissioners decided that the money represented understated profits of the company.

Frederick Lack Ltd v Doggett 46TC524

In the years 1955 to 1958 Lack, the controlling director, had spent £10,332 on various identified items (purchase of land, loans etc), whereas Lack’s total known income for the six years 1952-53 to 1957-58 was only £7,500. Assessments were made on the company and appeals were determined by the General Commissioners, who made a finding of wilful default. In the High Court and the Court of Appeal the counsel for the Company relied on various legalistic points (jurisdiction of Commissioners, etc). »Ê¹ÚÌåÓýapp Commissioners decision was upheld by the Court of Appeal.

Bamford v ATA Advertising Ltd 48TC359

A director of the company advanced £15,000 from the company’s bank account to another company which he controlled. »Ê¹ÚÌåÓýapp £15,000 was written of as a bad debt. A small loan owed by the director to the company (£636) was also written off. »Ê¹ÚÌåÓýapp company claimed a deduction in calculating the profits for the £15,000 and the £636. »Ê¹ÚÌåÓýapp High Court held that the losses were not deductible, not being connected with or arising out of the trade.

Fen Farming Co. Ltd. v Dunsford 49TC246

»Ê¹ÚÌåÓýapp managing director of the company, R S Kilham, whose taxation history was bad (he had a £20,000 settlement for the late 1940s and early 1950s) died in 1963 and a non-disclosed bank account (omitted from the Certificate of Full Disclosure at the end of the enquiry) was discovered, the balance being £37,000. Case I assessments were made on the company on the grounds that the monies in the account were diverted profits. »Ê¹ÚÌåÓýapp company’s representations were legalistic (defects in the Stated Case, the Revenue were stopped from alleging that the £37,000 was company money because they had charged Estate Duty on it, etc). »Ê¹ÚÌåÓýapp Court of Appeal dismissed the company’s appeal.